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Tuesday, 15 February 2022

Autonomous shipping the solution to global supply chain issues? + The EU is SpaceX’s newest competitor

Is autonomous shipping the solution to all our global supply chain woes? The world’s first autonomous container ships have landed in Japan, with the launch of two fully autonomous container ships, the Mikage and the Suzaku, over the past few weeks, reports Quartz. Japan’s nonprofit Nippon Foundation and freight industry partners Mitsui Lines and Japan Railway Construction have ramped up construction and testing of autonomous cargo ships, ferries, and amphibious trucks in efforts to reduce labor requirements. Although these developments are important in Japan because of the country’s aging population, labor shortages are a key factor behind the global supply chain issues of the past two years.

The development could be significant for the freight industry, but it doesn’t seem like it’s going to really take off anytime soon. Shipping lines such as Maersk think that regulatory approval for autonomous freight will be a long time coming, suggesting that it won’t be a game changer for efficiency in the near future. Rolls-Royce Holdings’ marine unit began focusing on “autonomous shipping as a future business to address a downturn in the offshore oil industry,” but the unit was put up for sale in January after failing to generate net income.

Speaking of Rolls-Royce: The holding company expects to see a fully-electric small aircraft powered by its battery electric system by 2025, top exec Rob Watson said, according to Bloomberg. This will be the first commercial application for the company’s electric system, P-Volt, which will allow as many as eight people to fly as far as 80 nautical miles. Rolls-Royce expects to extend that range to 400 km in the next decade, Watson said, but the new system is not going to be used anytime soon for narrowbody aircraft, which includes Airbus and Boeing, citing limitations due to the battery’s energy density and its weight.


Watch out, SpaceX — you’ve got some competition from the EU: The bloc is planning to launch a EUR multi-bn satellite internet system as it looks to move away from dependence on US and Chinese-built systems, EU officials said, according to the Financial Times. The encrypted system could also provide internet coverage for Africa and is being positioned as an alternative option in the event of cyberattacks, which are on the rise as of late, an EU official said.

Not as keen on the plan: The EU’s internal watchdog, which reportedly sees the initiative as a waste of money and a competition with commercial services, EU officials say. It has rejected the impact assessment twice, two people familiar with the situation told the paper. But some amendments have been pushed following the rebuff, including a commitment to include small businesses at home with the design and building of the system. Such businesses will be required to provide EUR 2 bn of the initiative investment in the public/private partnership.

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